Rosenberg & Estis, P.C. Secures $435,837 Judgment Against Guarantors in Tenant Default Case

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PROPERTY OWNER ALSO RECEIVES NEARLY $150,000 IN ACCRUED INTEREST

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Rosenberg & Estis, P.C. has secured a judgment of $435,837 against individual guarantors for Handcheikh Investments, LLC, a tenant that had net leased 702-694 Rockaway Avenue in Brooklyn. The firm also secured nearly $150,000 in accrued additional interest ($39,225 per year for nearly four years).

Rosenberg & Estis's Jeanine Floyd, associates, represented the plaintiff, 702-694 Rockaway Avenue Corp. before Justice Larry D. Martin in Brooklyn Supreme Court.

Colin Warner, Catherine A. Charles Warner, Andre Juman and AG Juman Management, Inc., individually executed guarantees for the tenant, which defaulted on its lease payments to the owner of the building at the same time that it had sublet various portions of the building and was collecting rent from the subtenants.

Rosenberg & Estis served a default notice under the lease, and thereafter commenced a declaratory judgment action seeking to terminate the net lease and to obtain entry of a judgment for arrears and attorneys' fees.

Two of the three guarantors had moved out of state, but Silverbush was able to retain the services of an out-of-state process server who effectuated personal service on the guarantors. The defendants defaulted in the Supreme Court action, and Rosenberg & Estis succeeded in obtaining a judgment for the requested relief, including a money judgment against the guarantors in the amount of $435,837.

Nearly a year after entry of judgment, the guarantors moved to vacate the default judgment by order to show cause utilizing the services of an attorney. While that order to show cause was pending, they retained a second attorney to submit another order to show cause seeking the same relief but on slightly different grounds.

We worked with Silverbush to prepare the opposition papers, and Jeanine Floyd appeared and argued in opposition to the order to show cause. The judge's decision adopted Rosenberg & Estis's arguments in toto, and denied both of the defendants' orders to show cause. The judgment provided for 9 percent statutory interest from February 1, 2014, or $39,225.33 in accrued additional interest.

"This was a significant victory for the property owner as we were able to secure a judgment against out-of-state guarantors, withstanding attempts by two different firms to vacate," Silverbush said. "It appears the defendants thought they could violate their agreements and move out of state without consequence, but they underestimated the capabilities of motived client with able counsel."